Your practice and your people – managing through the coronavirus crisis
Foulger Underwood and the Gro Group are holding regular online forums with senior leaders in the accounting and legal professions where they share thoughts, concerns and ideas about managing through the pandemic – and beyond.
From these fortnightly get-togethers we have collated the key experiences, strategies and action points that have arisen. We will regularly update this page with the latest learnings.
Latest session: 25/09/20
We focused on:
• Supporting our people – current/new issues, mental health, well-being and resilience
• Operational considerations – WFH vs office working, performance and productivity issues
• Leadership – support and balance
• Economy – forecast business hardship in Q1 2021
Experiences
The majority of attendees said their confidence in the economy and recovery was lower than the last session; the ‘bumps in the road’ of Covid’s impact on people and business were the main reason.
Mental health, in particular that of staff, was on their minds. Covid policies were reinforced and reiterated as local lockdwons came into effect, though no wholesale changes to WFH and office policies were noted.
A fall in efficiency/productivity in WFH was noted.
Redundancies are forming business conversations, particularly as the timescale for more robust Covid management and a further return to normal is at least medium term in the distance.
Learnings/strategies
Managing partners looking at increasing 1;1 support for senior staff – and issue that had previously focused on more junior roles.
After the last six months of emergency support for clients, attendees were now reconsidering planning and strategies going forward.
Action plan
It seems to be a period of reflection and planning ahead – certainly in terms of mitigating SA workflow and subsequently driving their firms forward. People support, from a mental health and productivity aspect, are still to the fore.
Next session: November 2020
Previous sessions in chronological order
09/04/20
Experiences
First furloughing of staff. Some asked for volunteers, others were compulsory. Staff seem relieved, in that it has given certainty to their position in the short/medium term.
Initial upheaval of working from home has included internet issues, along with missing or incomplete hardware /software i.e. extra laptops bought.
Yammer and Slack used for informal or unstructured communication. Zoom and Microsoft teams popular for video conferencing.
Lots of video conferencing with clients and generally a huge uplift in communication.
Signing of official documents has been a problem.
Learning/Strategies
Some have seen productivity hold up or increase, others have seen a dip.
Communicating with furloughed staff to keep them ‘part of the team’ – though making sure it’s not considered ‘work’.
Some team members haven’t previously been ‘trusted’ to work from home, so this situation will clarify its viability.
Trying to work ‘smarter’ with clients and not ‘harder’ i.e. share information more broadly to avoid individual discussions where not required.
Action plan
‘Rolling’ furloughing being considered i.e. three weeks on and three weeks off.
More thought into structuring teams’ working days, alongside tracking/monitoring productivity. This also has to fit with team members’ own working patterns i.e. where they are having to look after other family members during the day.
Monitor cash position and try to ease any rental burden. Consider any other further efficiencies.
Forum summary
“Despite experience of remote and flexible working, the extent of the lockdown meant firms had to fill technology gaps, whether in processes, communication or equipment. Quick decisions were also made about furloughing,” says Foulger Underwood MD Keith Underwood.
24/04/20
Experiences
Furloughing of staff taken place – second tranche taken place. These are predominantly business support/trainees.
No rush to bring people back to the workplace.
Some business areas, such as SME support and payroll, very busy.
Contact with clients has been constant, mostly instigated by the clients themselves.
Productivity of working from home good.
Audits more difficult due to not being able to visit sites.
Teams holding ‘virtual’ lunches and get-togethers online.
Learning/Strategies
Understanding the technological, hardware and internet connectivity issues that some team members face.
Some people redeployed into busier service lines where possible.
Communication plans being put in place, email for broader messaging; Online video/phone for direct comms.
Sharing of advice ‘for free’ and building up deeper relationships with previously ‘compliance only’ clients.
Management meetings happening much more frequently, with particular focus on cashflow and resourcing.
Action plan
Scenario planning around phased return options, including:
Early thoughts about how the office space will be configured when people can return to work; and Potential for ‘Team A’ and Team B’ strategy to ease the office headcount.
Maintain momentum around internal comms strategy and workflow. Managers to be proactive in communicating with and monitoring staff morale and mental health. Track usage of online video comms and which system works best.
Initial thinking about a permanently changed workplace and workforce. This included: working from home options; technology requirements; and office leasing strategy.
Forum summary
“Communication, whether with clients or between staff, has been the focus of the past two weeks. Making sure the former understand their financial and operational options; supporting the latter in terms of workflow and their mental health (including furloughed people),” says Foulger Underwood MD Keith Underwood.
07/05/20 (in this session a number of polls were run with our audience; we’re sharing the high-level findings)
Experiences
Poll result: Consensus view that fee income would be down between 5% and 20% in the next year.
Feelings were mixed about the financial position of practices – which are inextricably linked to those of their clients. Work is available for practices, but the concern was clients’ ability to pay when mounting debt and subsequent repayments are taken into consideration over the next 6-12 months.
Some practitioners were positive about the future, pushing hard to protect existing clients while being approached to help new clients.
Poll result: Staff will be encouraged to work from home post-lockdown; while most expect to see 25% of staff back in the office in the next few weeks.
Most attendees not looking to rush people back into the office, though concerns voiced about trainees missing out.
However, some team members extremely anxious about returning. Concerns manifest around travelling and managing social distancing/cleanliness in the office.
Certain sectors facing massive upheaval and adversity – particularly construction, retail and manufacturing.
Learning/Strategies
Opinion was that the Big Four firms are moving away from trying to take market share at the lower end – even retrenching. This will give opportunities for the next tier of practices.
Poll result: More than half of attendees will put in place rotational working teams post-Lockdown. A third will have regular office deep cleans, while six in ten are placing two-metre markers on their floor. Most will also have staggered working times.
Some offices are ‘ready to go’ in terms of people returning. Sanitiser, gloves, shielding facilities and temporary rules have been set out.
Practitioners have begun talking to teams about preparations – particularly around communicating the efforts and thought that has gone into making the office environment safe, and the rules that will be put in place.
A mixture of sentiment from attendees about working from home productivity levels. Some are looking at examples of shortening the working week, or keeping in place flexibility.
Action plan
Risk assessments and management being put into place to make sure people are safe to return to the office, and as importantly, that they feel safe. Communication of plans and a willingness to listen to concerns flagged as key in reintegrating people into working spaces – including wellbeing surveys.
A reconsideration of the legal and regulatory aspects surrounding health and safety in the workplace. The rules are the same – but must be borne in mind that the workplace and travel conditions are not.
These considerations will need to extend to face-to-face client meetings and/or external site visits.
Forum summary
“Firms have taken different approaches to preparing for short- and medium-term office arrangements – though there is consensus that staff safety is of paramount importance. Secondly, communicating this to their people is an important step in allaying fears. Thoughts are also turning as to where clients and the practice will be in the next 6-12 months – and what steps are required to provide best service, recoup fees and help clients move forward,” says Foulger Underwood MD Keith Underwood.
21/05/20
Experiences
Mental Health Awareness week – poll results: Nearly half (44%) said working from home was fine, while a quarter said it had its ‘ups and downs’ and were looking forward to returning to the office. The vast majority felt they had a network, or personal support, in place to help them through tough times.
In turn the vast majority (82%) believe they are doing enough to support their people in terms of social isolation.
More than half (56%) were concerned about creating an ‘always on’ working culture.
Learning/Strategies
Some wellbeing support already existed for most of the firms, mainstream prior to Covid. These focus on the ability to rally around people in need. One leader’s firms operates a ‘buddy system’.
A number of other tactics have been put into practice to help support wellbeing, including: turning off ‘push’ emails, so people have control and did not work all hours; and phone systems go to answerphone so they can be collected when the staff member wants.
Communication has been a vital part of health and safety. While working from home will be a choice for some staff, for others where it’s not considered a safe environment they will be encouraged to stay at home.
There are a variety of approaches to holidays. Some of the group have asked people to take holiday during furlough. Some have insisted people take it. Others have let their staff take holidays when they want.
Redundancies are being looked at as a ‘roll on’ from furlough. Some are planning for redundancy, but not completely set on implementing or dates.
Working remotely is impacting culture. Variety of opinions as to how or long-term implications.
Remote operations do not help this. Quality communication is key to helping maintain culture.
Conversely, an overkill on communication could be a negative.
Action plan
Ensure people feel comfortable sharing thoughts and concerns. Share stories and comment back - some have used the Yammer platform. Buddy systems in the office again flagged up as very important, as well as responding quickly to concerns.
Caution was noted that the numbers of people being made redundant could legally require a longer period of consultation.
The key issue was how to maintain appropriate work experiences, alongside adequate support. Onboarding an issue to be planned.
Cutting back on premises, or office space, is definitely on the agenda for consideration – in line with building an ongoing WFH policy.
Some firms are moving towards actual working in response to employee availability and are suggesting a 7am through to 10pm working day.
Some of the group are working more efficiently – questions whether this is a function of increased partner time or can partners step away from operations and more towards business development?
Some expect compliance work to increase in 2021.
Still the underlying demand for skills and scale after ‘Covid 19’ impact has been managed.
Forum summary
“The ongoing nature of lockdown is impacting wellbeing, and firms’ leaders are having to be proactive and mindful in gauging the mental health and concerns of their people. This flows into health & safety issues associated with reopening offices.
Subsequent questions for the medium and long-term revolve around ‘what is the office for’, and who needs to be there and when?’. The sharing of information, gauging how people are performing, and the culture/ camaraderie/collegiate atmosphere of a professional services firm isn’t easily translated in a virtual, or partly virtual, world,” says our MD Keith Underwood.
05/06/20
Experiences (in this session a number of polls were undertaken)
An early poll showed that business sentiment was largely positive among our audience. Some 29% were more positive about the future compared to two weeks ago. 71% remained feeling the same
Business is picking up, it’s a gradual increase with a marked change since lockdown was eased. It feels like it’s moving in a positive direction, but slowly.
Capacity issues appear to be a problem at the more junior staff level at the moment. Others are very busy. Capacity varies and even some are now falling short of work, below expected levels for certain staff groups, but with seasonality in work between tax and audit, some deferred. This makes furloughing a difficult tool to manage.
Learning/Strategies
Some feel the pain may come in 15-18 months’ time, as a lot of businesses may weather the storm until then, and it could be followed by an increase in business failures and therefore loss of work and drive down in fees and profits for advisers.
In the long term, most planning to need approx. 60-70% of former office space. People need the office community and connection, but not 5 days a week. Hubs in the office – work done at home.
We discussed the skills gaps within firms and whether these could be filled by part-time workers. Some had focused on IT, while everyone agrees there is a need to up skill business development strength and build everybody’s knowledge around remote working and indeed online software packages. Some realisation that new skills will be needed in a diverse delivery model with WFH and limited office time.
Action plan
Workforce planning seems to be one of the biggest challenges and although some staff were not furloughed, others are looking to continue furloughing staff between August and October.
People are still looking to their firm to provide a clear promotion pathway and will be keen to know the opportunities that exist and whether or not they remain on track. So how is your firm/organisation managing talent and progression during this time?
Some are placing considerable resource behind existing client contact and extending services. New business development is still moving on a referral basis, but seminar activity and cold calls have still to be tackled by most firms.
Forum summary
“There seems an understanding that businesses over the next few months will demand increased levels of support from their professional services providers to partner clients through the turbulence.
“However, practices have their own concerns: creating a safe, supportive and manageable working environment for the longer term, assessing implications for their office strategy; planning for new skills and adapting recruitment and business development,” says Foulger Underwood MD Keith Underwood.
19/06/20
Experiences
A poll showed that business sentiment was still mostly positive, but had fallen since a fortnight ago for a fifth of the group.
Confidence was coming from fresh client work, dormant clients now moving, cash collections looking good and employees coming back to work after furlough or from home.
A drop in confidence was coming from frustrations with the government over advice and policy, loan payback worry, concern for smaller end clients, clients not returning to work or any type of normal, business confidence falling and administrations being now discussed.
A fifth of attendees had also started speaking to their clients about redundancies and the majority saw the need for a reduction in about 10% of staff.
Learning/Strategies
Management of client contacts was broadly improving with some on updated and shared spreadsheets and this seemed to work as a good/fast fix in keeping tabs and knowing who was speaking to whom.
Key introducer plans’ were discussed and a few of the firms had these in place and were working successfully. One individual was responsible for certain key clients and actively recorded contact activity.
Pipelines and business development – most said their historic pipelines were still rolling and developing, especially as digital communication changes now in place. A few noted that the numbers going in the top of the funnel had slowed. Active marketing was happening by many, to pick up new clients ignored through the crisis by their old accountants.
Action plan
Conversation about productivity and timesheets. No one who used them, had moved to something else. Advice for those who wished to move from this method included changing focus to client service delivery and personal KPIs and milestones. Using caching and management to iron out issues instead. Firm should instead have KPIs in place with individual objectives – importance of metrics and management.
It was also noted the consequence of removing timesheets could be quite impactful and too difficult with the current organisational fluidity. Comment about WFH and ability to look after trainees as well. Moving forward, this may have an effect on remaining a training firm. Decisions to be made. Impacts on culture etc.
03/07/20
Experiences
With most firms having decided on their health and safety approach in the workplace there are moves to get people back in phases. Usually starting with those who are most keen to return, often this was found to be the trainees and younger staff, but not exclusively so.
Learnings/strategies
One firm had put together a welcome pack for those returning. Designed to be friendly, useful and helpful it contained a cool bag, water bottle to discourage use of communal kitchens, plus wipes, cleaners and a tool to avoid using door handles or touchpads. Plus, an A5 guide to the workplace.
People had assigned return to office champions to promote safe working and advise on best practice.
Action plan
There is going to be a need to encourage a sense of community across all staff, whether working in the office or from a remote location. This is a tough challenge as it is cultural but nonetheless must be addressed by all firms. It has repercussions for recruitment, onboarding, engaging with trainees, right the way through to managing the promotion processes. While this is difficult, it must be addressed if firms are to thrive.
We focused on:
The return to work conundrum – How to mitigate fears and plan the new BAU in the office
Productivity and performance – 4 months in; do we have a clear idea of how effective people are? How do we deal with underperformance?
Right sizing for the firm of the near future – Resource Planning after furlough and the potential rise of the gig economy
Certainty in an uncertain world – what can firms do to mitigate fear and offer certainty?
Experiences
Firms have maintained weekly or monthly communications with staff.
Some are engaging with bringing people back into the office – with returning seen as a psychological barrier or impediment for some. However, there is a huge range of attitudes taken towards RTW. Some inefficiencies from working from home are now becoming apparent.
Measurement and improvement of productivity cited as a worry.
Learnings/strategies
One firm is making short videos using TikTok to show how its office environment is safe, comfortable and welcoming.
There are plans to ramp up digital marketing, as a way to replace more traditional and physical forms of meeting potential clients.
There are concerns that moves to provide a more holistic and advisory-led service for clients is more difficult without face-to-face communication – even if tech is doing a lot of heavy-lifting.
Action plan
If marketing actions increase client flow, what impact will that have on staff – where and how are they working? A ‘key account management plan’ is vital.
Next session: November 2020
If you’d like to talk to us about any of the issues discussed, or get involved in our forums, please contact Julia Whistler at julia@foulgerunderwood.com.
